Are these correct?
WCInv. = (Current Asset - cash) - (Current liabilities - debt)
FCInv. = Gross Total Fixed Assets Current Year - Gross Total Fixed Assets Previous Year
Ummm, Iām confused. I donāt understand the meaning of your phrase āCurrent liabilities - debt.ā After all, āCurrent liabilitiesā ARE debt. Please clarify, and Iāll be glad to try to help you.
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Regarding āWCInv. = (Current Asset - cash) - (Current liabilities - debt)ā, I copied and pasted it from a someoneās elseās post from a search that I performed.
What would the WCInv. formula consist of?
Not all of them; only those that bear interest.
Wages Payable, Taxes Payable, Accounts Payable, Interest Payable, Unearned Revenue . . . none of them are debt.
WCInv = āCurrent Assets ā āCurrent Liabilities
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Iām assuming then that FCInv. = āPP&E + NCC ?
Your statement that 'Wages Payable, Taxes Payable, Accounts Payable, etc." are not debt is incorrect. They are debt. But they are not āfunded [i.e., interest-bearing] debt.ā
They arenāt.
Theyāre liabilities, but not debt.
Please tell me what you think the difference is between āliabilitiesā and ādebtā.
I already have.
Well, I guess Iām too stupid to have spotted it. Would you restating what you think the difference is, please, sir?
Here you are:
For finality, the change in Current Assets total does include the change in cash levels?
For some odd reason, Kaplan removes the change in cash amount from the WCInv. amount.
Not in this context.
You canāt use the change in cash to explain the change in cash.